Bring on 2017, because this Trump trade is just getting started

Welcome to the winter solstice, the shortest day of the year. So even less time for the Dow industrials to finally hit that level we’ve all been waiting for.

The index is back within spitting distance of 20,000, even as the pre-Christmas lull starts to get a grip on this market. There are three trading days left, so there’s still plenty of interest, even if only for historical purposes, to see if we make it to that big level.

Infrastructure stocks have played a part in the Dow moving up, and that sector is the focus of our call of the day. Talk from President-elect Donald Trump and his team about spending in the ballpark of $1 trillion on “rebuilding America” has spurred plenty of debate.

There are those who think the questions surrounding the when/where/ifs of that infrastructure spending could get in the way of further gains. But the team at Bank of America Global Wealth and Investment Management, led by Christopher Hyzy, says don’t bet on it.

“Despite the move up in many U.S. infrastructure-related stocks, we believe there is more long-term upside for industrial and technology leaders,” Hyzy says in a note to clients.

His main argument is this chart, which the chief investment officer says shows there is “little doubt over the urgency” of spending on bridges, power grids and so on:

Provided by the American Society of Civil Engineers, the chart gives (as of Dec. 2) a nearly flunking grade to almost all vital U.S. infrastructure, such as its drinking water, hazardous waste and aviation. Hyzy said the ASCE believes the true cost of bringing all these up to grade is triple the Trump administration’s $1 trillion estimate. (Here’s an unsettling recent look at U.S. dam safety.)

So if you missed out on that infrastructure play, here are some more names to look at from Cabot Wealth Network. And if you find yourself with some regrets over your trades this year in general, then take a look at this list of all the bonehead mistakes investors make (at all levels) from Daily Reckoning’s Greg Guenthner.

Robeco’s Jeroen Blokland seems to think Chinese traders could be to blame/thank for this move. He provides this chart showing how investors in the Middle Kingdom are “totally dominating” trading in the virtual currency:

Robeco

“In recent days, worries about liquidity and capital flows in China have increased,” he said in an email to MarketWatch. “Bitcoin’s regulation in China changes all the time, but the idea is that at least some people could use it to transfer money.”

Beijing has been turning up its efforts to crack down on how much money is leaving the country. Chinese investors have been using Bitcoin to get around capital controls, either using it as a stable store of value or as an intermediary in exchanging yuan for dollars or other currencies.

Blokland says if China comes out and sets out new Bitcoin regulation, as has been seen before, it would mean a hit for the virtual currency. Still, he said Bitcoin is not a “widespread traded ‘currency’ for now. Most people have switched to Blockchain instead.” More on Blockchain here.

The only significant economic data on the calendar is home sales, coming at 10 a.m. Eastern.

The stat

0.7% — That is the official rate of population growth for the U.S. in 2016, and it’s the slowest since the Great Depression, according to fresh Census Bureau data. Among the highlights, New York’s population shrank for the first time in a decade.

The quote

NBCUniversal

Baldwin does Trump

“I think that now that he is the president, we have an obligation — as we would if it was him or her — to dial it up as much as we can.” — Alec Baldwin talks to the New York Times about his “Saturday Night Live” impersonation of Donald Trump, for which he’s paid $1,400 an appearance.

Random reads

Lying to your kids about Santa Claus is officially OK. Take that, haters.

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